The benchmark indices gave up some of the gains recorded over the previous two sessions, with the Nifty 50 falling 1.11 percent on October 19 as bears dominated market breadth. On the NSE, around 2,526 shares declined, while 733 advanced. The market may attempt a rebound, but needs to decisively break above Monday’s high to sustain its upward momentum. Until then, the market is likely to remain in a consolidation phase. Here are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Ather Energy is trading near a crucial support zone where the 50-day exponential moving average (EMA) coincides with the 61.8% Fibonacci retracement level, creating a strong confluence of technical support.
Additionally, the daily chart shows a hidden bullish divergence on the Relative Strength Index (RSI), indicating the potential resumption of the prevailing uptrend. This pattern occurs when the RSI forms a lower low while the price forms a higher low, suggesting that the underlying bullish structure remains intact despite intermittent weakness.
The combination of dynamic moving-average support, Fibonacci confluence, and positive momentum signals strengthens the technical outlook. Traders may consider entering long positions in the Rs 1,430–1,460 zone.